Chapter 5 Demand and Supply

The law of demand states that as price decreases

• wages decrease

• production increases.

• demand increases.

• quality decreases.

In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in demand for

• buns.

• relish.

• hot dogs.

• ketchup.

Quantity demanded moves along the demand curve in response to changes in

• price.

• income.

• preferences.

• expectations.

Which of these is most likely to happen to demand for swim wear in a clothing store when blizzards keep customers at home?

• The demand curve shifts to the left.

• The demand curve shifts to the right.

• The demand curve becomes flatter.

• The demand curve becomes steeper.

Supply depends on the willingness and ability of

• donors to contribute.

• producers to produce.

• advertisers to promote.

• consumers to purchase.